The basic idea is an append only database of claims, made by ethereum identities about other ethereum identities or about any object. So the idea basically extends Zimmerman's web of trust concept, swapping PGP keys for ethereum keys, and extending the idea of key signing to making a claim of any kind. The claims are stored in the blockchain and cannot be altered.

Your idea will be great if for instance a store is connects all orders and their statuses. This will anyone to peak into their reputation by see which percentage of their orders went through without problem or vice versa

So, this idea basically looks like "claims on a blockchain". Something like this is definitely needed, but in itself, it does not constitute a real reputation system. It would need to be combined with "serious" reputation systems like Backfeed or Quantified Prestige to work reliably.